US technology giant Amazon has announced plans to invest more than €16 billion ($18 billion) in Germany in 2027, with funding expected to support data centres, artificial intelligence (AI) infrastructure and other business operations.
The announcement was made on Tuesday at a business summit hosted by the German government in Berlin. The investment comes as Europe’s largest economy seeks to attract new businesses and revive economic growth, particularly through investments in advanced technology.
Amazon’s chief global affairs and legal officer, David Zapolsky, described Germany as an attractive destination for investors, highlighting the company’s long-standing presence in the country.
“Germany is a hub of innovation and one of the most attractive investment opportunities in Europe,” Zapolsky said, adding that Amazon had invested more than €100 billion in Germany since 2010.
German Economy Minister Katherina Reiche also welcomed the announcement, saying the investment would “strengthen Germany’s position in international technology competition and create value and jobs in the process”.
Amazon Web Services, AI and Other Investments
Of the planned €16 billion investment, nearly €5 billion will be used to expand Amazon Web Services (AWS), the company’s cloud computing division, in the Frankfurt area. The expansion comes as demand for artificial intelligence services continues to grow.
Some of the funding will also support Amazon Leo, the company’s project aimed at delivering high-speed internet through a network of satellites.
Amazon further disclosed plans to upgrade its warehouses, including the increased use of robotics. Its video streaming service, Amazon Prime, also intends to film a range of new productions in Germany.
The investment summit, which concludes on Tuesday, has brought together more than 200 business leaders from Germany and other countries.
Germany Seeks to Revive Its Economy
The German government is working to attract companies willing to expand their operations as it attempts to pull the country’s stagnating economy back onto a growth path.
However, businesses have frequently raised concerns about excessive bureaucracy, high energy costs and shortages of skilled workers.
Chancellor Friedrich Merz told the summit that his coalition government had begun a major programme of reforms and modernisation.
“We have embarked on the most ambitious reform and modernisation drive of the past decades. We are committed to seeing these reforms through,” Merz said.
He identified tax relief, reducing bureaucracy and strengthening financial markets as some of the government’s key priorities.
Earlier, Reiche told a radio interview that companies had so far pledged investments worth more than €220 billion at the summit.
Merz opened the event late on Monday with an on-stage discussion featuring Jensen Huang, chief executive of Nvidia, the US company known for its artificial intelligence chips.
Berlin also announced a partnership with Nvidia aimed at accelerating the adoption of AI in industrial applications. Germany hopes to use the technology to strengthen its position in manufacturing, a major part of its economy.
Source: AFP
